Ltcg rates

Indexation is important in calculation of LTCG and you will have benefit arising from LTCG only.

A long-term capital asset gets concessional tax treatment, in more than one way. A holder of a long-term asset, has the benefit of enhancing the cost of the asset for the purpose of computing the taxable capital gains. This is generally known as the benefit of indexation.

The tax rate on long-term capital gains is 20.6% of the profit after indexation of cost. The option of paying tax at 10% without indexation is only available in the case of financial assets like mutual funds and the like; it is not available in the case of immovable property – for property, the tax has to be calculated at 20.6% post indexation